Determinants of Vertical Intra-Industry Trade of Turkey: Panel Data Approach
Intra-industry trade (IIT) is the simultaneous export and import of commodities that are classified in the same industry group. The literature on IIT deals with horizontal IIT and vertical IIT, which are concerned with trade of products that are at the same quality and those with different qualities, respectively. Vertical IIT accounts for 80 percent of total IIT of Turkey, therefore this paper focuses on vertical IIT. The aim of this study is to analyze the determinants of vertical IIT between Turkey and 9 major trading partners (namely, Belgium, France, Germany, Greece, Italy, Netherlands, Spain, United Kingdom and United States of America) for the 1989-2002 period by using panel data approach. The findings of this paper will shed a light on the future foreign trade policy of Turkey.
|Date of creation:||23 Nov 2005|
|Date of revision:||23 Nov 2005|
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